Apartment Rents Rise Nationally for First Time in Seven Months

Asking rents for apartments posted their first nationwide increase in more than seven months in February, Yardi Matrix said Wednesday. The average U.S. asking rent rose $1 to $1,713 in February, up 0.6% year-over-year, while occupancy decreased 60 basis points Y-O-Y to 94.5% as of January.

Markets in the Northeast and Midwest continued seeing rent increases, in contrast to the rent contractions in high-supply Sun Belt markets. Among Yardi Matrix’s top 30 metros, 13 posted rent declines, and five were down by 3% or more from a year ago. Occupancy was positive only in San Francisco, up 0.1%.

Although rents generally show signs of stability, factors including supply, demand, regional metrics and affordability will determine the market’s 2024 performance. Occupancy is likely to continue to decline, with one million new rental units expected to come online through the end of 2025.

“While high-demand markets are likely to record weak rent growth over the next year or two, the seeds of a rebound have been planted, as starts are declining and deliveries will drop in 2026 and 2027,” according to the Yardi Matrix report.

Pictured: Kansas City, MO, which posted month-over-month apartment rent growth.